Kotak Mahindra Bank continues to provide personal loans designed to meet various financial needs and aspirations of borrowers including medical expenses, debt consolidation, travel expenses, home renovation among other associated day to day expenses.
That is why it is extremely important for all aspirational personal loan applicants seeking a loan of ₹3.5 lakhs to understand the process, eligibility criteria and associated costs to accordingly plan, apply and secure such a loan in seamless fashion.
Basic eligibility criteria
- Age: Applicants should be between 21 and 60 years of age.
- Employment status: Salaried individuals employed with MNCs, public limited companies, or private limited companies are eligible to apply for this loan. Even self employed individuals can apply.
- Income requirement: Minimum net monthly income of ₹25,000 for Kotak salary account holders and ₹30,000 for others.
- Credit score requirement: A good credit history enhances approval chances. That is why a credit score of 750 and above can be considered to be a better score to ensure smooth loan approval.
Note: The eligibility criteria discussed above is illustrative in nature. For the updated terms, conditions and eligibility criteria refer to the official website of Kotak Mahindra Bank.
Interest rates and charges
- Loan interest rate: The personal loan interest rates start from 10.99% per annum.
- Processing Fee: Up to 4-5% of the loan amount, deducted at disbursal.
- EMI Calculation: Use the EMI Calculator to estimate monthly repayments.
Note: The interest rate discussed above along with other terms are illustrative in nature as they depend on several different factors such as credit scores, repayment history etc. For the updated terms, conditions and interest rates refer to the official website of the Kotak Mahindra Bank.
Additional information
The aspirational borrower can apply for personal loans ranging from ₹50,000 to ₹35,00,000 and above depending on several factors such as their credit score, past repayment history, history of defaults, overall creditworthiness etc.
Risks and considerations before borrowing
Given personal loans are easy to access and disbursed quickly, still they come with the responsibility of on time payments. That is why before applying keep these risks in mind:
- Interest burden: Long tenures or high interest rates increase the total repayment amount.
- Late payments: Late payments can hurt your credit score and attract penalties.
- Pre-payment charges: These charges may apply, if you close the loan early.
- Avoid over borrowing: Only borrow the amount you can repay comfortably.
Therefore, on a holistic basis loans are credit instruments and they should only be availed when the borrower is in a position to repay the entire loan amount along with applicable interest on the same. Such an approach can save you from falling into the trap of debt.
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